With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. The table below shows the difference in USD you would have achieved when buying £200,000.00 during the high and low points of the past month.
|Currency Pair||% Change||Difference on £200,000|
The USD lost some ground against both GBP and the Euro during Wednesday’s trading, as the markets brace themselves for what could be another explosive chapter in President Donald Trump’s regime.
President Trump has never been one to shy away from the media spotlight but the current headlines probably make for uncomfortable reading, for the self-proclaimed “saviour of the aviation industry”.
The much anticipated “Fire and Fury: Inside the Trump White House”, written by journalist Michael Wolff, will be released next week and snippets of the book have been released in the press over the past few days.
Yesterday, Trump’s lawyers were seeking to stop the release of the book, which give an incriminating insight into his presidency. Of course the claims in the book have been met by instant dismissal by the White house, with Trump claiming that his former strategist (and the books most high profile source) Steve Bannon has “lost his mind”.
I’m sure many of our clients will have read some of the accusations but the key question from a currency standpoint, is whether or not they will have a direct effect on the USD and its value.
Whilst there has been little reaction as of yet, it is hardly an ideal scenario for the leader of the free world to be intertwined in such controversy on a seemingly daily basis.
The US economy, as our regular readers will know is performing admirably and has exceeded many expectations. Growth forecasts look strong, with the US FED supporting the improvement with two rate hikes last year and more expected before the end of 2018.
Looking at Cable and whilst it is unusual to see the greenback trading around the current levels for such a sustained period, we must remind ourselves that the goal posts have been moved since Brexit.
My opinion is that the Pound is unlikely to gain enough support to make a move above 1.40, unless we see a major breakthrough in talks between the UK government and EU leaders over the coming months.
In the short-term, those clients holding the USD will be hoping for a strong reading in today’s non-farm payroll figures, which could help boost the greenback’s value further. This in turn could push GBP/USD rates back towards 1.34.
Thank you for reading my USD currency report, if you have any questions about an upcoming transfer I would be more than happy to discuss them – you can contact me with any queries on 01494 725 353 or email me here.
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